Link Cables: Comprehensive Market Analysis and Strategy Report

This report provides a comprehensive market analysis of Link Cables, a producer of electrical wires and cables in Pakistan, examining its position within the country's cable industry. The analysis includes a detailed SWOT analysis, highlighting strengths like cost-effectiveness and a strong supplier network, while also acknowledging weaknesses such as low market share and brand awareness. It explores various customer segments, including price-sensitive, brand-conscious, and industrial clients, and conducts a thorough competitor analysis, differentiating between regulated and unregulated market players. The report identifies key business and social challenges faced by Link Cables, such as competition from unregulated markets and the need for effective marketing. Current strategies, organizational design, and market segmentation are discussed, along with proposed strategies including distribution channel optimization, rebranding, and integration to enhance Link Cables' market presence and profitability. The report concludes with recommendations for Link Cables to improve its competitive advantage and achieve its business goals in the dynamic Pakistani market.

Contents
Introduction.....................................................................................................................................................................3
The Cable Industry in Pakistan...................................................................................................................................3
Link Cables.................................................................................................................................................................3
Market Analysis..............................................................................................................................................................4
SWOT Analysis..........................................................................................................................................................4
Strengths:............................................................................................................................................4
Weaknesses:........................................................................................................................................4
Opportunities:.....................................................................................................................................5
Threats:...............................................................................................................................................5
Customer Segments........................................................................................................................................................5
Price Sensitive............................................................................................................................................................5
Brand Conscious.........................................................................................................................................................5
Price and Brand Conscious.........................................................................................................................................6
Industrial Clients........................................................................................................................................................6
Competitor Analysis.......................................................................................................................................................6
Regulated Market.......................................................................................................................................................6
Unregulated Market....................................................................................................................................................7
Business Challenges........................................................................................................................................................8
Social Challenges.......................................................................................................................................................9
Current Strategies............................................................................................................................................................9
Organization Design...................................................................................................................................................9
Link Cables’ Market Segmentation..........................................................................................................................10
Link Cables’ Current Strategy for these Segments.......................................................................................................11
Proposed Strategies.......................................................................................................................................................12
Distribution Channels...............................................................................................................................................12
Rebranding...............................................................................................................................................................12
Integration.................................................................................................................................................................13
Conclusion....................................................................................................................................................................14
References.....................................................................................................................................................................15

Introduction
The Cable Industry in Pakistan
The Cable and Wire business is critical in providing insulated nonferrous wire, cable and fiber-
optic, and other cable goods to the economy's industrial and service sectors. Pakistan's industry
began in 1953 with the establishment of Pakistan Cables. Since then, it has progressed
significantly, with major producers such as Newage Cables, Pakistan Wire Industries, and Fast
Cables establishing their companies. The industry is highly concentrated, and other areas of the
economy have a direct impact on it.
The local market is characterized by the fact that Pakistan is the world's sixth
most populous country, with increasing demand for the construction, energy,
automobile, and other sectors. Local manufacturers may profit from the
existing market size of $285 million and the potential for development based
on substantial investments in the construction, automotive and power
industries if they plan ahead. According to the Engineering Development
Board, the industry's current exports are near $4 million, with the export
market having a potential of estimated £45 million.
Local producers control over 70% of the market (by value), with the rest split
between imports and distributors, producers who are not regulated. Three
businesses control more than 65 percent of the current market share which
are Newage Cables, Pakistan Cables, and Fast Cables, with Newage Cables
possessing a considerable market share dominance by having the most
shares. The leftover market is majorly dominated by importers, both
regulated and unregulated), and the rest consists of a vast number of

manufacturers operating on a small-medium scale.
Link Cables
Link Cables is a producer of electrical wires and cables situated in Islamabad,
Pakistan, and is part of a corporation with extensive expertise in the energy
sector. Swift Electric Private Limited (SE) created the “Link Cables” brand
with the goal of manufacturing Electric Cables and meeting the demands of a
rising economy. The need for cables in Pakistan has increased, necessitating
the establishment of the firm. They offer a wide choice of high-quality raw
materials from reputable suppliers, allowing them to offer shorter
manufacturing lead times.
The company understands that the customer is critical to the company's
success, therefore they provide a high-quality experience from the initial
consultation through the delivery of your customized final product. In these
days of rising counterfeit items on the market, they believe in providing only
the finest to their consumers.
They deliver right to your door from their production plant. They provide one
of the most complete cable product lines accessible anywhere, all of which
are manufactured under a strict quality control system. They also provide
complicated cable solutions from inception to completion, aiding with
technical requirements all the way to site delivery and well beyond.

Market Analysis
SWOT Analysis
Strengths:
 Cost-friendly
 High end quality at a lower price when compared with competitors
 Low Production Cost
 Strong Supplier Network
Weaknesses:
 Relatively New in the Market
 Low market share
 Low Brand Awareness
Opportunities:
 Collaborations with industrial clients, IESCO, LESCO, WAPDA, KE, etc.
 Digital Marketing since the consumers have shifted towards digital marketing
 Digital marketing can lead to Online Selling
Threats:
 Unfair practice in the industries
 Unregulated market using the names of regulated companies
 Market is highly unregulated as compared to the other industries in Pakistan
Customer Segments
Price Sensitive
Pakistan, in general, is a price sensitive nation and this is the reason that the

unregulated market in Pakistan is so prevalent. The people who are reaching
their retirement age are more sensitive to the prices of the cables. But at the
same time, they do not want to compromise on the quality of the product,
and this is where Link Cables shines as they are producing on approved
quality standards, and they are priced relatively low when compared with
Fast Cables and other regulated companies. They have to face severe
pressure from the unregulated market, but their substandard quality makes
it a less appealing option for someone who wants to spend his money wisely.
Brand Conscious
Young people or millennials are usually the ones who are brand conscious.
This makes them an attractive market for Link Cables. It is a registered
company, and this serves as an appealing factor for millennials as they are
looking for a registered brand because it is a guarantee for quality and
reliability. It is the major reason that millennials are a customer segment for
Link Cables.
Price and Brand Conscious
There is a third segment as well that is priced and brand conscious at the
same time. These are mostly the developers who are being hired by people
to build their houses, or plazas. They are the ones who are looking for good
quality products at a fair price. It is where Link Cables outshine its
competitors.
Industrial Clients
Another identified market segment for Link Cables is industrial clients. K-

Electric, WAPDA, and other companies like IESCO, LESCO, etc. can be the
main target market for Link Cables.
Competitor Analysis
Regulated Market
The regulated companies have been in the market for over more than two
decades. Like Link Cables, they are registered with the regulatory authorities
of Pakistan. The main reason that Link Cables lacks behind its competitors is
because it is relatively new in the market. Link Cables can give a difficult
time to its competitors based on its ability to produce at a cheaper rate.
They have an optimized manufacturing facility which lets them reduce their
manufacturing cost and, in this way, they can easily control their prices in
the market. It is one of the reasons that they are considered to be price
leaders when it comes to the regulated companies in Pakistan. The only
threat that the regulated market poses to Link Cables is their market share.
As of now the market leader is Pakistan Cables and they have been in the
market since 1940s. The basic strategy that can help Link Cables to get
ahead of its competition is to extensively market its product using television
advertisements and digital marketing. They should also opt for online selling
sends as of now only showing the option for quotation on their website. Their
competitors like Pakistan Cables have online stores. It is very important for
Link Cables to start selling their products online to directly compete with its
regulated market competitors. Link Cables can build their reputation around

fair market practices which some of the competitors do not show.
Unregulated Market
The main problem that this unregulated market causes is that they can undercut the prices of
Link Cables. Pakistan being a price sensitive nation, can shop from this unregulated market and
this is the reason that they have stayed in the market for so long. Although they can undercut the
prices of Link Cables, they cannot directly compete with the company on quality standards
because the unregulated market has substandard quality which cannot be compared with the
regulated market. So, the people who are looking for quality products will not opt for an
unregulated market, and it does not pose a serious threat when it comes to the quality offerings to
the consumers.
Link Cables entered the cable industry in 2018 when the market was already
concentrated and dominated by regulated corporations that had been
prevalent for more than 20 years.
Regulated companies are listed on the Pakistan Stock Exchange, with their
data open and documented to the public. Being active taxpayers, they have
a benefit to their credit history which opens doors to businesses and gives a
positive reputation, providing them with a good negotiating power and
letting them obtain better rates while attracting more investors.
Furthermore, they can create strong relations with regulatory bodies such as
PEPCO and WAPDA, allowing them stronger market positions. Furthermore,
being ISO certified, their operating methods fulfill the quality assurance
criteria.
Unregulated companies, on the other hand, are not recognized by Regulatory

Authorities, and control 30% of the cable and wire market, with the majority
of these businesses headquartered in Gujranwala and Lahore. Link Cables is
one of them and has faced significant challenges that can be categorized
under business challenges and social challenges.
Business Challenges
Problem #1
Cables are a necessity that are used in every household, for instance, every
house has electric wires. Link Cables need to keep their prices low in
accordance to the market competition in order to be easily managed.
Furthermore, their product categories comprise of both imported and local
machines. PVC (Polyvinyl Chloride) wires are the ones that don’t spread fire.
The problem arose that there were already a lot of similar products in the
market that were being sold at prices lower than the ones charged by Link
Cables. The market prices of these products ranged between 800 and 900
rupees. Link Cables needed to spread awareness among their customers that
they should buy good quality products.
Problem #2
The second problem that Link Cables faced was with regards to launching a
brand in the competitive market. Regulated companies have a 70% market
share and price their cables at around 1800 rupees, whereas unregulated
companies have a 30% market share and price their products at around 700
to 900 rupees. The major competitors in the market are Pakistan Cables,
Allied Cables, Fast Cables, and Coppergat Cables. Pakistan Cables is a

market leader with a brand presence since the 1940s, whereas the rest of
the above-mentioned also have a very strong hold in the market. The biggest
concern, however, is that all these four companies are regulated, whereas
Link Cables are not.
Problem #3
One of the most basic problems in any business, including Link Cables, is
sales. Production is very easy; however, the issue lies in selling what is being
produced. Two primary parameters of sales that Link Cables must
strategically address are in terms of developing a product that satisfies an
actual need of the customer after a demand for the product is certain, and
then developing appropriate pricing strategies that maximize both sales and
profits.
Social Challenges
Problem #4
One of the social challenges that Link Cables face is that cable wires are life
hazardous. For instance, home fires are often due to short circuits in cables.
Good quality cables, from companies that are well-regulated, however, avoid
this hazard. In opposition, low quality cables are a result of an unregulated
market. Link Cables, being unregulated, faces the primary issue in terms of
how to handle the unregulated market.
Current Strategies
Link Cables operates in Islamabad, Pakistan. It comes out as one of the top ten companies for

construction in Islamabad, especially for regions such as Gulberg Greens and Bahria Phase 8.
Link Cables’ goal is to increase sales and revenue generation; of which it has been quite
successful. It has gained a large portion of the market share in this industry in Islamabad and
plans to expand further in KPK and other Northern Areas.
Organization Design
Link Cables’ flat and inorganic structure attributes to its reduction of
communication barriers and success in achieving its company goals. The
company culture is friendly, open and empowering as employees are given
autonomy in making decisions and are not micromanaged. Employees from
all departments are provided with the opportunity to grow and their opinions
are heard and acknowledged. The sales team members can work in flexible
hours as long as they complete the sales goal. There is an open-door policy,
and any sort of political issues are discouraged. The management is
regularly in contact with teams by conducting meetings and following up
with them. Such an open environment attracts people to join the firm and be
motivated.
Employees are also given specific tasks by the company to ensure that there
is clarity in their work goal expectations. Some employees are entrusted with
the task of convincing CEOs of other companies to purchase their product
whereas others are required to communicate with electricians who may have
leads in other sectors of Islamabad.
Link Cables’ Market Segmentation
Link Cables’ is a relatively new company in this industry, which is why most

people are unaware of this brand and go for the more popular cable
companies. This is why it was important for Link Cables to divide their
market segments and focus on marketing to them so they could attract their
target market.
After extensive research on Link Cables’ potential customers, the company
revealed their ideal target market group which can be divided into three
segments: nuclear/young families, retired public officials and third parties.
Young and Small Families
These families are usually the nuclear families or young couples who want to
live in a separate home from their parents and/or have been educated from
abroad and chose to settle in Pakistan. Young couples are usually more
brand conscious rather than price, as they have a good amount of disposable
income to spend.
Retired Public Officials
These are the group of people who are planning to or have already retired
from their jobs and are using their lifesavings into building a home for
themselves. Since these people are older and have other responsibilities,
such as caring for their children, they are conscious of their expenses and
consider the prices of the products rather than their brand.
Third Parties
These people use outside agents, consultants, builders, contractors etc. to
find a good home for them as they do have the money, but not the time to
research and make an informed decision about the right kind of place for

purchase. They tend to save costs for themselves while also using a high-
quality product to build the company’s reputation.
Link Cables’ Current Strategy for these Segments
Young Families
Since this segment focuses on the brand name and the quality of the
product, Link Cables targets this market by ensuring that their products are
of the highest quality possible. They manufacture the cables on high quality
imported machinery by maintaining constant checks on the quality
management system. The customers also have a choice of visiting the
warehouse to pick and choose the coils, and this transparency guarantees
trust of their target market.
Retired Public Officials
This market is tapped by providing them with low-priced and low-cost
solutions as they are price conscious. It is harder to convince this group since
they focus on the price rather than the quality of the product they are
buying.
Third Parties
This segment focuses on the price as well as the quality, which is why a
different strategy is used to persuade them. Link Cables sends sales
representatives to visit these consultants, contractors, etc. to purchase their
product, by claiming that it is of high quality and at a reasonable price.
Link Cables also keeps a check on the electricians and targets them so they
can engage in word-of-mouth marketing. Since most people have less